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Making Your Money Last

Good Reasons to Work Past Retirement Age

It can pay to stay on the job even after you are eligible to retire.

Retiring at age 65 is becoming less common. And that's not just because people haven't saved enough for retirement. Increasingly, even those who can afford to quit working don’t.

See Also: SLIDE SHOW: 10 Reasons You Will Never Retire

Here are three good reasons why you, too, should consider staying on the job at least a few more years.

Reason Number 1: Employer Benefits

The benefits you get at work could be worth hundreds, maybe thousands of dollars. One biggie is your employer’s health insurance, which could be cheaper than Medicare and provide better coverage. Whether you should keep your work coverage over Medicare depends on a number of factors, including how big your company is. Also consider whether your company makes contributions to your 401(k) or provides life insurance before you head for the door.

Reason Number 2: Social Security

You'll be able to earn 8% more Social Security for each year you delay claiming it past your full retirement age, until you reach 70. If you're healthy and anticipate having at least an average life expectancy, it can make sense to wait until 70 to collect the bigger benefit, particularly if you have a spouse who could prosper from a boosted survivor benefit. But that means coming up with another way to cover your expenses in the meantime. How about a regular paycheck?


Reason Number 3: Relationships

Working isn't all about money, right? If you like your job, keep doing it. The relationships you make and the fulfillment you get at the office might be hard to replace when you leave. If you don’t have a clue about how you'll spend your time -- and with whom -- after you leave work, stay on the job until you do.

Still not convinced? Take a look at three more good reasons to work past retirement age.